Industry News

Toyota to Expand its Production Line in United Kingdom

Toyota to invest USD294 million in United
Kingdom’s car manufacturing unit

United
Kingdom: Japan
automobile giant, Toyota Motor Corporation is going to expand its market
penetration in United Kingdom. The company is planning to invest USD294 million in its existing car plant
located in Burnaston, United Kingdom. The step is taken by the company to boost competitiveness and promote the use of
locally-built components.

The company currently manufactures Auris hatchback and midsize Avensis car. It is expected
that with this investment, the production capacity of the plant would increase on
an yearly basis. Besides manufacturing of Auris hatchback and midsize Avensis
car, the vehicles produced in the factory at Burnaston would also be exported
in various other markets.

Toyota's Europe chief, Johan van Zyl
said, “Our investment demonstrates that, as a company, we are doing all we can
to raise the competitiveness of our Burnaston plant in Derbyshire”.
"Continued tariff-and-barrier free market access between the UK and Europe
that is predictable and uncomplicated will be vital for future success."

As per TechSci Research, the recent investment
pooled in by Toyota in United Kingdom, is likely to expand its production of vehicles
in the country in coming years. Consequent to this, the step taken by the
company would generate an emerging demand for tires in United Kingdom’s OEM tire
market, which would eventually, influence the overall tire industry of the
country in approaching years.

According
to a recent report published by TechSci
Research, “United
Kingdom Tire Market
Forecast & Opportunities, 2021’’, tire market in the United Kingdom is
projected to surpass US$ 6 billion by 2021. United Kingdom tire market is
predominantly replacement driven, owing to large and expanding vehicle fleet
size in the country. In 2015, the country’s tire market was dominated by the
passenger car tire segment, which accounted for more than 80% of the total tire
demand in the UK, followed by light commercial vehicle and medium & heavy
commercial vehicle tires. A major portion of demand for tires in the country
emanates from London and South East regions due to their large automobile fleet
size and high level of urbanization.